## Fanduekisses one year ago Calculating Compound Interest HELP pls. *Will Smith face from pursuit of happiness*

1. Fanduekisses

On the day of a child's birth, a parent deposits \$30,000 in a trust fund that pays 5% interest, compounded continuously. Determine the balance in this account on the child’s 25th birthday.

2. Fanduekisses

I have to use the $P(1+\frac{ 1 }{ n })^{nt}$ ?

3. Fanduekisses

But what is n??

Idk how to do this, sorry @dan815 Smart boi

5. anonymous

I think you mixed up formulas. Compound interest formula for periodic compoundings (n = times interest is compounded annually) $A=P \left( 1+\frac{ r }{ n } \right)^{nt}$ Continuously compounding interest $A=Pe^{rt}$

6. anonymous

you want to use the second one $A=30000e^{(0.25\times25)}$